July - August 2017 by Loss Prevention Magazine

JULY–AUGUST 2017 | V16.4 LOSSPREVENTIONMEDIA.COM

LOSS PREVENTION MAGAZINE THE AUTHORITY ON ALL THINGS ASSET PROTECTION

PRODUCT PROTECTION BENEFIT-DENIAL SOLUTION SAVES MILLIONS IN SMARTPHONE LOSSES

INTERVIEW WITH DAVID JOHNSTON OF DUNKIN’ BRANDS LP LEADERS OF THE FUTURE? NO BIG BRAIN REQUIRED ACCESS CONTROL AND THE CASE OF THE MISSING CAMERA

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TABLE OF CONTENTS 6 EDITOR’S LETTER

Revisiting Timeless Topics, Exploring New Ones

By Jack Trlica

10 RETAIL SPONSORS 12 INTERVIEWING

Product Protection Benefit-denial solution saves

Random Lessons from the Room: Part One

By David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP

Rent-A-Center millions in smartphone losses

22 FUTURE OF LP

By Garett Seivold, Contributing Writer

Brick-and-Mortar Is Not Dead; Amazon Just Proved It By Tom Meehan, CFI

24 LPM EXCELLENCE

LPM “Magpie” Award: Applauding Excellence

From Retail LP to Solution Provider to Restaurant Brand Protection An interview with

34 BENCHMARKING

Adopting an Intervention Assessment Framework in LP By Adrian Beck, Walter Palmer, and Colin Peacock

42 ASK THE EXPERT

Solving Access-Control Challenges by Engaging with Retailers

David Johnston of Dunkin’ Brands

With Ken Kuehler

By James Lee, LPC, Executive Editor

44 EVIDENCE-BASED LP Winning Loss Prevention By Read Hayes, PhD, CPP

56 CERTIFICATION

Professional Membership: What’s in It for You?

LP Leaders of the Future? No Big Brain Required Benchmarking the next

By Christina Kendall

59 SOLUTIONS SHOWCASE - CONTROLTEK - CAP Index - Digilock - LP Innovations - Southern Imperial

generation of LP professionals

By Francis D’Addario, Dean Correia, and Sean Dettloff, Security Executive Council

66 LPM DIGITAL

Keeping Safety and Security Top of Mind By Jacque Brittain, LPC, and Kelsey Seidler

69 PRODUCT SHOWCASE 70 PEOPLE ON THE MOVE 72 CALENDAR 72 ADVERTISERS 73 VENDOR SPONSORS 74 PARTING WORDS

Access Control and the Case of the Missing Camera Whodunit stories from an

You Are a Good Guy, Gene Smith

LP investigator’s files

By Jim Lee, LPC

By Dave DiSilva, Contributing Writer

JULY–AUGUST 2017

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EDITOR’S LETTER

Revisiting Timeless Topics, Exploring New Ones T

his edition of the magazine has a wide-ranging selection of feature articles—from product protection to restaurant security to loss prevention professionals of the future to a detective-novel-like telling of access control. The article about Rent-A-Center’s product protection solution for smartphone losses in their rent-to-own stores is our cover story because it’s one of the first benefit-denial success stories we’ve heard. The concept of benefit denial as a means of making stolen products useless without an unlocking key has been discussed for quite some time. The Rent-A-Center team has put together an interesting approach for protecting smartphones that has saved the company millions of dollars (see page 15). Congratulations to them for putting a theory into practice. Our executive interview this time is with David Johnston, who started his career in retail loss prevention, moved to the solution provider world, and came full circle back to retail. He describes his boomerang career on page 25 and his current role with Dunkin’ Brands—the iconic owner of franchise brands Dunkin’ Donuts and Baskin Robbins. He also provides a description of the Restaurant Loss Prevention and

Safety Association, his role as president, and its upcoming conference. It is not news that the role of loss prevention professionals is rapidly changing to meet the expanding needs of the retail industry. The magazine is collaborating with the Security Executive Council (SEC) to look at what the future asset protection professional will look like—what skill sets, education, and other attributes will be needed to fully contribute to the retail enterprise. Three members of the SEC faculty offer their observations of the current status of loss prevention and corporate risk management on page 37. More importantly, this article is a launching point for a benchmarking survey of all levels of our readership to get your views of what you think you need to do your job in the future. We encourage you not only to read the article, but also to contribute to the survey “LP in Transformation—What Is the Next Generation of You?” by visiting securityexecutivecouncil.com/ lpsec2017. The results of the survey will be reported in a future edition of the magazine. Last, but certainly not least, is a film noir-like telling of one loss prevention executive’s experience

JULY–AUGUST 2017

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with access control. Our friend Dave DiSilva has a thirty-year career in a variety of roles in multiple industry segments. Starting with a part-time security job with a hotel during college, he learned that understanding access control provided him a foundation for success in his career. He explains using numerous examples of incidents and investigations with a good deal of wit mixed with wisdom. Enjoy DiSilva’s writing on page 47 and learn some things about access control you may not know. When we first announced the concept of this magazine for loss prevention professionals in 2001, more than one person asked, “Are there enough things to write about to fill a magazine?” This edition is an example of both new and old topics that continue to inform and educate our readers. After sixteen years, we haven’t published a blank page yet.

Jack Trlica Managing Editor

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An Unmatched Depth of Perspective

EDITORIAL BOARD Jim Carr, CFI Senior Director, Global Asset Protection, Rent-A-Center

David Lund, LPC Vice President of Loss Prevention, DICK’S Sporting Goods

Ray Cloud Senior Vice President, Loss Prevention, Ross Stores

John Matas Vice President, Asset Protection, Investigations & ORC, Macy’s

Francis D’Addario, CPP, CFE Emeritus Faculty Member, Strategic Influence and Innovation, Security Executive Council

Chris McDonald Senior Vice President, Loss Prevention, Compass Group NA

Charles Delgado, LPC Regional Vice President, Store Operations, Academy Sports Scott Draher, LPC Vice President, Loss Prevention, Safety, and Operations, Lowe’s Scott Glenn, LPC Chief Security Officer, Sears Holdings Tim Gorman Divisional Vice President, Loss Prevention, Asset Protection, and Business Continuity, Walgreens Barry Grant Chief Operating Officer, Canadian Images

Randy Meadows Senior Vice President, Loss Prevention, Kohl’s Melissa Mitchell, CFI Director of Asset Protection and Retail Supply Chain, LifeWay Christian Stores Dan Provost, LPC Vice President, Global Loss Prevention, Staples Tina Sellers, LPC Director of Loss Prevention, Retail Business Services LLC, an Ahold-Delhaize Company Mark Stinde, LPC Vice President, Asset Protection, 7-Eleven

Bill Heine Senior Director, Global Security, Brinker International

Paul Stone, LPC Vice President, Loss Prevention and Risk Management, Best Buy

Frank Johns, LPC Chairman, The Loss Prevention Foundation

Robert Vranek Vice President, Loss Prevention, Belk

Mike Lamb, LPC Vice President, Asset Protection, The Kroger Co.

Keith White, LPC Senior Vice President, Loss Prevention and Corporate Administration, Gap Inc.

JULY–AUGUST 2017

700 Matthews Mint Hill Rd, Ste C Matthews, NC 28105 704-365-5226 office, 704-365-1026 fax MANAGING EDITOR Jack Trlica JackT@LPportal.com EXECUTIVE EDITOR James Lee, LPC JimL@LPportal.com EDITORIAL DIRECTOR, DIGITAL Jacque Brittain, LPC JacB@LPportal.com MANAGING EDITOR, DIGITAL Kelsey Seidler KelseyS@LPportal.com CONTRIBUTING WRITERS Adrian Beck Read Hayes, PhD, CPP Tom Meehan, CFI Walter Palmer, CFI, CPP, CFE Colin Peacock Maurizio P. Scrofani, CCSP, LPC Garett Seivold Gene Smith, LPC Shane G. Sturman, CFI, CPP Bill Turner, LPC David E. Zulawski, CFI, CFE CHIEF OPERATING OFFICER Kevin McMenimen, LPC KevinM@LPportal.com DIRECTOR OF DIGITAL OPERATIONS John Selevitch JohnS@LPportal.com SPECIAL PROJECTS MANAGERS Kat Houston, LPQ Justin Kemp, LPQ Karen Rondeau DESIGN & PRODUCTION SPARK Publications info@SPARKpublications.com CREATIVE DIRECTOR Larry Preslar ADVERTISING MANAGER Ben Skidmore 972-587-9064 office, 972-692-8138 fax BenS@LPportal.com SUBSCRIPTION SERVICES

Loss Prevention, LP Magazine, LP Magazine Europe, and LPM are service marks owned by the publishers and their use is restricted. All editorial content is copyrighted. No article may be reproduced by any means without expressed, written permission from the publisher. Reprints or PDF versions of articles are available by contacting the publisher. Statements of fact or opinion are the responsibility of the authors and do not necessarily represent the opinion of the publishers. Advertising in the publication does not imply endorsement by the publishers. The editor reserves the right to accept or reject any article or advertisement.

LOSS PREVENTION MAGAZINE

NEW OR CHANGE OF ADDRESS myLPmag.com POSTMASTER Send change of address forms to Loss Prevention Magazine P.O. Box 92558 Long Beach, CA 90809-2558 Loss Prevention aka LP Magazine aka LPM (USPS 000-710) is published bimonthly by Loss Prevention Magazine, Inc., 700 Matthews Mint Hill Rd, Ste C, Matthews, NC 28105. Print subscriptions are available free to qualified loss prevention and associated professionals in the U.S. and Canada at LPMsubscription.com. The publisher reserves the right to determine qualification standards. International print subscriptions are available for $99 per year payable in U.S. funds at circulation@LPportal.com. For questions about subscriptions, contact circulation@LPportal.com or call 888-881-5861. Periodicals postage paid at Matthews, NC, and additional mailing offices.

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INTERVIEWING

Random Lessons from the Room: Part One C

onversations often take strange turns, leading where we never expect them to go. Such a conversation inspired this column discussing the lessons we’ve learned during tens of thousands of interviews. We opened this topic up to our interviewers, so they could also share things that they have learned over the years in the room.

The Truth Often Has Many Versions

The truth can be an elusive thing. Determining the truth can often be problematic even when there may be audiovisual evidence of what happened. Four cameras covered the slide of the runner as the third baseman took the throw and swung his mitt to touch the advancing runner. The umpire was carefully positioned and observed the play calling the runner out. The manager protested the call, and the umpires gathered to review the video evidence of the play. While the play was clearly close, after attempting to tag the runner out the third baseman pursued the runner reinitiating the tag when he reached third base. Immediately the announcers raised questions suggesting the third baseman had actually missed the tag. Depending on the camera angle, there was

Most of the problems in the interview are caused by the interviewer. These problems can vary, but ultimately they are the responsibility of the interviewer. It could be the tone of voice, word usage, strategy, failure to rationalize, or any of a dozen other things the interviewer is doing wrong. 12

JULY–AUGUST 2017

by David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP

Zulawski and Sturman are executives in the investigative and training firm of Wicklander-Zulawski & Associates (w-z.com). Zulawski is a senior partner, and Sturman is president. Sturman is also a member of ASIS International’s Retail Loss Prevention Council. They can be reached at 800-222-7789 or via email at dzulawski@w-z.com and ssturman@w-z.com. © 2017 Wicklander-Zulawski & Associates, Inc.

no independent verification that the umpire had blown the call. The end result—the base runner was out as the play was called. Sometimes the truth can be altered because of the position of the observer. In this case, the third-base umpire was in the best position to closely examine whether or not the third baseman actually made contact with the runner. Fans who were biased for the runner argued the third baseman’s actions after the attempted tag showed that he believed he had missed touching the runner. So the truth can change as a result of biases, assumptions, position, or other qualifiers, which might shade even the truthful witness’s testimony. Many times the guilty individual will intentionally shade the truth in an attempt to salvage his self-image or to reduce the seriousness of what he has done. For the investigator it is often difficult to know with absolute certainty what the real truth might be. Instead, the investigator has to use the physical evidence, witness testimony, or other information to piece together what is the most likely series of events.

Don’t Give Up Your Evidence

Since it can be difficult to tell when people are lying, shading the truth, fabricating events, or just omitting details that may incriminate them, the investigator can use what evidence is available to evaluate the stories, sequence of events, or alibis of the main players. If the individual was aware of all the information available to the investigator, he could begin to alter his story to match the evidence uncovered during the investigation. However, when the investigator withholds the evidence and allows the individual to tell his story, the evidence can help determine the veracity of the individual. One common problem during conversations with those suspected of wrongdoing is that the investigator contaminates a confession by talking about evidence, alluding to evidence, or using leading questions that infer the correct answer. Evidence can also be given up by using an incorrect assumptive question to obtain the first admission. For example, if the subject is suspected of creating fraudulent refunds to steal money, many investigators might ask for continued on page 14

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continued from page 12

the first admission using this question—“What is the most number of fraudulent refunds you created to take money from the company?” If one was to use an assumptive question relating directly to the refund, you have indirectly told the subject what is most likely known and where his exposure in the investigation lies. This question may also infer that the investigator does not know about any other forms of cash thefts the employee has participated in. This results in the employee making fewer admissions because he doesn’t believe the investigator knows about the other areas of theft. Had the investigator used an assumptive question that said, “What is the most amount of money that you took from the company in the last year?” This question addresses a broad area of the investigation, which has revealed the employee stole money but not the method used to do so. The employee may now offer an admission to

For the investigator it is often difficult to know with absolute certainty what the real truth might be. Instead, the investigator has to use the physical evidence, witness testimony, or other information to piece together what is the most likely series of events

Rarely Catch the Person the Very First Time

taking money right out of the register or voiding sales leaving the investigator with his knowledge of the individual using fraudulent refunds to steal cash. The investigator now knows in absolute terms that the employee is lying by omission, and there is additional development of the admission to be done. In any interview where the individual confirms facts that were not related to him by the investigator, it helps substantiate that the subject is giving a truthful confession.

What Is the Common Denominator?

If there is a problem with the outcome of an interview or a conversation always seems to cause someone to deny, it is most likely going to happen because of something the interviewer is doing or saying that contributes to the problem. The common denominator in multiple interviews is the interviewer, not the subject. What this tells us is the interviewer’s statements or actions must be contributing to these difficulties. When investigators come to us saying, “I always have this problem,” the first thing we begin to do is look at what

JULY–AUGUST 2017

the interviewer has done and said up to that event. By examining what came before the problem, we are often able to determine how to correct these difficulties. For many investigators, it’s the problem of developing an admission beyond what was already known from the investigation. With this problem, it’s often the assumptive question that contributes to the lack of development. For example, if an investigator watched an employee steal $20 out of the terminal and put it in the right front pocket, he may choose to ask the individual to remove the money from their pocket immediately. Now the employee knows he is caught but also can surmise that this is the only thing the investigator knows and thus is confident that he can claim that this $20 theft was the only time he had taken money. Had the investigator gone through with the interview and asked the individual, “When was the very first time you took money from the company? It wasn’t your first day on the job was it?” The investigator now has an opportunity to expand the scope of the admission and ultimately develop the admission to a more accurate amount. Most of the problems in the interview are caused by the interviewer. These problems can vary, but ultimately they are the responsibility of the interviewer. It could be the tone of voice, word usage, strategy, failure to rationalize, or any of a dozen other things the interviewer is doing wrong. If you’re having problems, examine carefully what you’re doing and saying that may be contributing to the problem.

For everyone, there will be a very first time that they have done something wrong or committed a crime. However, people tend to fall into patterns of behavior that they can rationalize and justify internally. Also, people become more careless and have less fear of being caught the more often they do something. The very first time a crime is committed, there is a significant emotional and physiological reaction to their fear of detection, but this diminishes as they have success in their crimes. There are likely to be other indicators that a person is likely to be involved in theft activity. Dissatisfaction, poor workmanship, and frequent absences can all be indications that someone is unhappy in their position and can therefore justify a criminal act. Even in a murder where a husband takes his wife’s life, there are likely to be other actions he took during the relationship that could have contributed to the ultimate death. It would be highly unusual for a spouse to kill their partner unless it was preceded by some form of verbal or physical abuse, infidelity, or some other event that was a precursor to the murder. Prior to the interview, consider what the individual has done and what other related types of incidents would be of a similar nature. For example, a residential burglar could also easily rationalize a simple theft, shoplifting, or other property crime because they are closely related and likely to provide items that could be converted into cash. We will continue our discussion of lessons from the room in our next column. LOSSPREVENTIONMEDIA.COM

FEATURE

PRODUCT PROTECTION BENEFIT-DENIAL SOLUTION SAVES MILLIONS IN SMARTPHONE LOSSES By Garett Seivold, Contributing Writer

PRODUCT PROTECTION

oe, a would-be thief, couldn’t believe his luck. Here was a store willing to hand him a brand new state-of-the-art smartphone with no credit check and a few dollars down. And just two doors away was another retail store—this one advertising that it paid top dollar for smartphones. The criminal wheels in his mind turned. “Easiest money I’ll ever make,” he thought. But in the real-world version of this scenario—and it did happen—“Joe” was rebuffed when he tried to turn his rent-to-own cell phone into quick cash. Rent-A-Center had registered the phone’s unique identifiers on a blacklist of sorts, so the companion retailer knew not to process the transaction. This was phase one of a security strategy that Rent-A-Center’s asset protection team devised to protect its rented mobile devices. In short order, the device protection plan the department employed reduced losses by over 50 percent and saved Rent-A-Center millions of dollars.

The Rent-to-Own Model

The primary loss prevention challenge faced by Rent-A-Center is obvious—and

built in to its founding business model. Started as Mr. T’s TV Rental in the 1960s, the concept was the brainchild of Ernie Talley, who wanted to give hardworking customers who lacked cash and credit a way to rent merchandise with an option to own it. The company’s rent-to-own model gives people who lack cash and credit immediate access to top brands and products. “We’re not retail; we’re rent-to-own, so our transactions start Brian Peacock where most end,” explained Brian Peacock, CCIP, director of asset protection for Rent-A-Center’s US operations. “When you make your first weekly payment of $30, you can be walking out with a $2,000 TV with no credit check.” It’s a model where some measure of loss is clearly unavoidable—and where the ability to control the amount of loss is critical to business success. From its founding as Rent-A-Center (RAC) in 1986, the company has grown from sixteen stores to approximately 2,600 stores in the United States, Mexico,

Canada, and Puerto Rico; employs nearly 21,000 people; and is a leader in an industry that is nearing $7 billion annually. The company earned its reputation by helping people furnish their homes with rent-to-own furniture, appliances, and electronics, but has expanded into computers and mobile devices. It’s in this category that the company started to see problematic losses. “When we entered the mobile space, there was a much higher risk of transaction fraud, and the mobile category saw high losses,” said Peacock. Not every customer chooses to follow the rent-to-own agreement to its conclusion. Some individuals, for example, decide that they can’t afford it, and others decide they want to upgrade. These cases are no problem for RAC; customers simply bring the item back for a return or an exchange. However, in some cases, customers stop making payments, which typically sparks the company’s recovery process. “It depends on what state and what jurisdiction the transaction was in, but typically we would pursue it through our legal department,” explained Peacock. “So as long as we did our work on the front end, we could file against

Total Past Due Dollars During Roll-Out of DPP on Smartphones, 2015*

Remaining Value Dollars Past Due

1/3

1/17

1/30

2/14

2/28

3/14

3/28

4/11

4/25

30-59 Days Past Due

5/9

5/13

6/6

6/20

7/4

60 Days Past Due

*Graph lines reflect the drop in past-due dollars as more smartphones had device protection installed

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7/18

8/1

PRODUCT PROTECTION the customer—for a felony in some jurisdictions—or pursue a civil case.” Although RAC was doing an effective job at recovery, the expense of getting products back from delinquent customers was significant, especially with its mobile category. “In our general model there is already risk, and we realized that we were going to have to figure out a new approach for smartphones, to prevent people from renting a phone and then selling it to an unsuspecting customer on Craigslist or eBay.”

An Idea Takes Shape

Rent-A-Center’s million-dollar device protection solution originated five years ago in the loss prevention department, which is now branded as asset protection. The LP team was mulling over ways it could protect its rent-to-own computers. One of the ideas was to secure computers with software that could be remotely activated, essentially rendering them “bricks.” The idea to apply a software solution to inventory hit a snag, however, when Aaron’s—using a similar product— was accused of accessing the cameras on customers’ computers. (Issues in the case are still being litigated. In May, the Ninth Circuit Court of Appeals ruled against retailer claims that insurance providers had a duty to defend it in underlying lawsuits.) The case drew quite a bit of attention in the press and caused RAC to rethink its plan to lock rental laptops. “We had put the idea on pause until we started with mobile and smartphones—at that point we knew we were going to have to figure something out to protect our assets,” said Peacock. Through leveraging his retail connections, Peacock turned to Recipero, a data aggregator focused on depriving thieves of a safe and ready market for misappropriated mobile devices. The company collects data from a variety of sources, such as theft reports, carrier contracts, and device ownership data, and shares that with law enforcement, insurers, and retailers—with the goal of helping stakeholders identify instances of fraud, for example in the event that a person sells his or her device and then files

Benefit denial is one of the core principles of a situational crime prevention approach to security, which is built on the theory that an effective way to deter crime is to make attempts more difficult, more risky, and less rewarding. The strategy’s potential to cut crime is clear—if goods aren’t useable or won’t work unless purchased, then there is no reason for someone to steal them. On the backend, RAC gets daily reports with information on which device, when, and where such attempts took place. Within twenty-four hours a notification is sent to operations so that a call can be placed to the customer that had possession of the device and make him or her aware that RAC had knowledge of the attempted transaction.

Old Strategy, New Twist

an insurance claim, or if a person is attempting to sell a leased device. By leveraging the power of blacklists under its Stop Loss program, Rent-A-Center was able to make an immediate impact on the losses due to fraudulent resale of rented mobile devices. “We got that initial strategy up and running quickly, and we immediately saw a positive impact,” said Peacock. That included the real-world case of “Joe.” When he took his just-rented smartphone to a neighboring GameStop, the device showed up on a “don’t purchase” list, and the retailer turned him away. Thwarted, he returned to the RAC store two doors away and returned the phone. LP MAGAZINE | JULY–AUGUST 2017

The idea of curtailing a crime by denying thieves the ability to benefit from the goods they steal is an old one. Recipero’s website highlights a quote from a book on crime reduction dating back to 1800—“Deprive a thief of a safe and ready market for his goods; and he is undone.” Benefit denial is one of the core principles of a situational crime prevention approach to security, which is built on the theory that an effective way to deter crime is to make attempts more difficult, more risky, and less rewarding. The strategy’s potential to cut crime is clear—if goods aren’t useable or won’t work unless purchased, then there is no reason for someone to steal them. For revenge or out of spite, perhaps, but that’s about it. The strategy has a history in loss prevention, such as the development in the 1980s of ink or dye tags to protect store apparel. In that use case, illicit removal was designed to ruin the garment, thus reducing the ability for a thief to use it or convert it to cash, according to Read Hayes, PhD, CPP, director of the Loss Prevention Research Council. More contemporary benefit-denial techniques include car stereos that don’t function if

PRODUCT PROTECTION the faceplate is removed and special hotel hangers with small hooks or ball tops that require special racks. “In this low-tech example, benefit denial does not make stealing hangers riskier or more difficult; rather it makes it less rewarding unless the thief steals the rack as well or sells the hangers to other hotels,” according to Hayes. While “benefit denial is not the total product protection answer for all assets in all places,” Hayes suggests that it is a good fit for today’s retailers, who are under pressure to enhance relationships with shoppers by providing open or self-serve merchandise access. “Benefit-denial technologies hold the promise of much more open selling of even high-value items,” according to Hayes. This concept—to deny the illicit use of smartphones—was at the foundation of Rent-A-Center’s winning asset protection strategy. Peacock and his team knew that the technology existed to lock cell phones and began to investigate how they could make it work for them. It was a thought exercise that the asset protection team was practiced at conducting. “We’re not the typical retailer, so the typical loss strategy won’t work for us in 80 to 90 percent of cases,” explained Peacock. “So we’re very used to thinking about how we can take an existing security solution and create a modified version that fits our business.” In the last few years, the RAC asset protection team has used its unique business model to drive a slate of innovative technology solutions, including use of remote CCTV and business analytics to conduct remote in-stock audits to boost sales. The AP team also has several new projects in development, including the use of ID scanning technology combined with feature-matching biometrics to create a digital identity for customers. These profiles will use multifactor authentication to assist with detecting internal and/or external fraud while approving or declining rent-to-own applications. While phone-locking technology already existed for corporate devices, the AP team had to do some legwork in order to find a technology partner who could provide technology that would

Percent of RAC Smartphone Deliveries to Stores with DPP Installed, 2015 Snapshot* 80%

71.59%

73.18%

69.37%

70%

63.14% 60%

53.17% 50%

40% 4/18

4/25

5/2

5/9

5/16

Percent with DPP *As it was critical to RAC’s ROI, metric was tracked weekly during launch

prevent phones from working even after a factory restore and resetting of the device. RAC’s new partner, an endpoint security company called Absolute, began working on the next step—development of the software local stores would install on each smartphone before it was rented. The whole asset protection project was implemented remarkably fast. In July 2014, RAC launched smartphones in all of its stores. In November, the asset protection team partnered with the largest smartphone data company to register the international mobile equipment identity (IMEI) numbers of all RAC smartphones to protect them from being sold or traded at other major retailers. In April 2015, the RAC asset protection team launched its Device Protection Program (DPP)—the technology-based solution to lock a device in the event it is lost, stolen, or has an expired contract.

Rollout and Results

Webinars for every store manager in the country, led by AP and supported by RAC’s mobile training group, was key to JULY–AUGUST 2017

a successful roll out of the DPP. Adoption was aided by the fact that the LP program opened up a lucrative product category many stores had shied away from. “They absolutely loved it and couldn’t wait to get it,” said Peacock. “Part of their bonus is based on store profitability, and stores were anxious to rent more smartphones.” Additionally, the asset protection team, in coordination with the sales and mobile training groups, created a resource manual for store personnel that walked them through the steps of the program, potential scenarios that could arise, and instructions for helping customers understand the program. The manual detailed specific instructions on issues, such as how to install the DPP software onto phones (using a micro USB provided to stores) and how to respond to customers who report that their phones are locked. Written scripts take staff through the correct way to interact with customers in a range of locked-phone scenarios, in the event someone bought a stolen phone or is past due on a payment, for example.

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PRODUCT PROTECTION

Rent-A-Center’s million-dollar device protection solution originated five years ago in the loss prevention department. The LP team was mulling over ways it could protect its rent-to-own computers. One of the ideas was to secure computers with software that could be remotely activated, essentially rendering them “bricks.” At the heart of the DPP is RAC’s ability to lock a phone once the software is installed on a smartphone and it is rented. Locking scenarios include: ■ I f a smartphone customer is seven-plus days late on his or her payment, AP receives a notice from internal reports and automatically locks the device. The individual is only able to make emergency calls and receive calls, and a message appears—“This phone has been disabled because the lease agreement has expired. Please contact or visit your Rent-A-Center store to arrange payment or return the device.” Once payment is received, the customer is provided an unlock code to regain

■

full use of their smartphone. “On the front end, we let customers know about the technology and that the phone will lock if they go seven days past due,” explained Peacock. “And we let them know that once a phone is paid out, we can remotely remove the software.” I f an RAC customer attempts to sell a smartphone to a retail partner, a notification is sent to AP, who then disables the phone until it is recovered or a district manager authorizes the phone to stay on rent. W hen a customer reports a lost or stolen phone to RAC, AP disables the phone until it is recovered. That capability—that RAC can use the LP MAGAZINE | JULY–AUGUST 2017

software to help retrieve a stolen device for customers—has been used as a selling point to customers. In this way, the locking software isn’t strictly viewed as a way to enforce payment. ■ W hen a store charges off a phone as “Skip/Stolen” or “Inventory Shortage,” AP disables the phone until it is recovered. Once underway, the team anxiously awaited results from the DPP. One area of concern, which didn’t materialize, was that locking phones would cause a significant increase in returns. Instead, when faced with a locked device, most customers simply paid up. “People can’t imagine living without their phones, and we had a dramatic increase in payments,” said Peacock. From a technical perspective, Peacock said the phone-locking process has been smooth. However, with 180,000 locks placed on smartphones last year, AP is working with the RAC IT team to automate additional aspects of the process. Perhaps the most important benefit, however, is the fact that most customers don’t put the locking software to the test. When a smartphone has the device protection application installed, it’s 50 percent less likely to go seven or more days

PRODUCT PROTECTION past due compared to devices without the program installed, RAC data show. The 50 percent reduction in past dues equated to a 50 percent reduction in losses for the company. When devices do go past due, more than 60 percent of customers either make a payment or return the device within seventy-two hours of being locked. Investigations have also benefited from the ability to pull the phone number from the SIM card within the device. This capability has assisted in the successful resolution of numerous internal and external investigations, according to Peacock, for example cross referencing a stolen phone’s number, identifying a suspect, and calling the number to conduct an impromptu interview.

Moving Forward

Remaining Value Protected by DPP

Percent Protected

Galaxy Note 2

$2,983,084.09

76.03%

Galaxy Note 3

$3,964,737.72

85.53%

Galaxy Note 4

$6,978,358.74

74.19%

Galaxy S 3

$206,942.04

49.03%

Galaxy S 4

$1,480,591.31

79.10%

Galaxy S 5

$7,807,539.42

84.34%

Galaxy S 6

$4,756,273.32

93.39%

$3,899.63

9.77%

$29,303,752.06

81.02%

Models

Galaxy S Relay TOTALS

Peacock added that the endeavor was a true team effort, including key players in operations and product service, technical support, and the promotion and sales strategy divisions. RAC was also careful to work with

JULY–AUGUST 2017

its vendor to develop technology that would have no ability to track devices, locate individuals, take screenshots, or do anything similar that might cause privacy concerns. “Our reach was limited to our goal to secure our

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PRODUCT PROTECTION

From deterring theft, reducing loss, and improving collections, RAC’s AP team calculated millions in savings within the first twelve months of the DPP. With those results, it’s no surprise that Peacock, who has spent twenty years in the loss prevention industry, called it “one of the most innovative and rewarding projects I’ve worked on.” assets until recovered or a payment is collected,” said Peacock. As for advice for his industry peers, Peacock said he’s seen the value of making things simple and had to know that after the first webinar introducing the DPP that the stores would get it and love it. “My new motto is if it needs instructions, then it is probably too difficult to execute,” said Peacock. Somewhat related, Peacock said the project taught him the benefit of taking responsibilities and pressures off stores

by creating an enterprise solution that transfers work load to a central office, in this case the RAC Field Support Center. “Our program had a high success rate because we did not depend on 2,400 store managers to identify devices that needed to be locked. We took care of that for them,” said Peacock. The Field Support Center also supplied a centralized tool to quickly provide information about locked phones, including the passcode needed to unlock devices, he added.

Peacock understands that the millions saved in year one is likely the program’s high watermark. As awareness grows among scofflaws and deadbeats, fewer are likely to rent phones with the intention to steal. But while savings from the DPP on smartphones levels out, the RAC asset protection team is already taking aim at its next target—laptop computers and tablets and, eventually, game systems and televisions. “The technology isn’t quite there yet, but the opportunity is definitely there,” said Peacock, anxiously looking forward to his AP team’s next million-dollar victory.

GARETT SEIVOLD is a journalist who has covered corporate security for nearly twenty years. He has been recognized for outstanding writing, investigative reporting, and instructional journalism. He has authored dozens of survey-based research reports and best-practice manuals on security-related topics. Seivold can be reached at GarettS@LPportal.com.

STOPPING BAD GUYS STARTS WITH GOOD DATA COMBATING CRIME IS COSTLY, BUT IMPROPERLY ASSESSING CRIME RISK CAN BE DEADLY. With data from CAP Index®, retailers can quickly and accurately identify crime risk levels for all stores across their brand and pinpoint those that are most at risk for violent crime. CAP’s crime risk intelligence enables retailers to reduce an array of crime and loss.

Learn how to OUTSMART CRIME® today. capindex.com 800-227-7475

LP MAGAZINE | JULY–AUGUST 2017

FUTURE OF LPVIEWPOINT ACADEMIC

Brick-and-Mortar Is Not Dead; Amazon Just Proved It

The Amazon Prime service has a fee associated with it but is very similar to a loyalty program. For a yearly fee, you get expedited shipping and access to content like music, videos, and books. All the benefits are tangible and easy to understand. When you think of loyalty programs, normally what comes to mind is airlines and hospitality. While airlines and hospitality seem to have the loyalty piece figured out, it’s far from being straightforward and often has a lot of confusing fine print. Amazon Prime, on the other hand, was designed to be simple: pay this fee every year, and—bam—you get benefits. Free two-day shipping, a better price in some circumstances, free content like videos, music, books, and magazines, and access to digital services are only some of the perks. Amazon Prime is more about the customer experience and the technology itself. While most will look back and say Amazon is a technology company, I would challenge you to think about how they use technology to enhance the customer’s experience.

What Amazon has done, and some retailers have failed to do, is figured out how to create a customer experience that is conducive to the evolution of technology, economic state, and the generational differences.

Amazon Go

Amazon Go, while technically still a pilot, is a small-footprint store with minimal customer detractors. This allows the customer experience to be quick and easy. It can be considered the next generation of self-checkout. While the Amazon Go concept is still in pilot, it draws attention to the fact that Amazon is always geared toward the customer experience or at least the presentation is. Amazon Go uses advanced technology to allow the customer to go into a store, pick up an item, and leave without ever interacting with a cashier or point-of-sale (POS) system by using a smartphone and sensors throughout the store. My point with Amazon Go is not whether it is a good or a bad idea. The simple fact is that Amazon is consistently willing to try to enhance the customer experience.

Today, customers are more educated than ever on product costs, sales, and quality. The Internet allows customers to be more educated than ever and to set the tone for the experience and their expectations. Don’t forget that the demographic of the world is changing, and there are more people from more generations than ever. So how does a retailer cater to everyone? While I certainly don’t have the exact answer, I want to throw out a few things that Amazon has done to continue to grow and thrive, regardless of their success, profitability, or longevity.

JULY–AUGUST 2017

Meehan is the chief strategy officer and chief information security officer for CONTROLTEK. Previously he was director of technology and investigations with Bloomingdale’s, where he was responsible for physical security, investigations, systems, and data analytics. He currently serves as the chair of the Loss Prevention Research Council’s innovations working group. Prior to his 13-year tenure at Bloomingdale’s, he worked for Home Depot in loss prevention, and has had various technology, loss prevention, and operational roles at several other companies. He can be reached at tom.meehan@controltekusa.com.

Amazon Prime

rick-and-mortar didn’t die, and Amazon just confirmed it with its purchase of Whole Foods. Unless you live under a rock, you have seen the news related to Amazon’s purchase of Whole Foods for more than $13 billion. Over 90 percent of retail purchases are made in-store today. So why all the news of store closings and retailers that are underperforming? Have all the mergers and acquisitions over the years made some retailers too big to maintain their size, or have some retailers not evolved with the change in consumer behaviors? Could it be that customer expectations have changed rapidly in the last five years with technology? What role does the Internet play?

By Tom Meehan, CFI

Amazon Books

Amazon Books is a brick-and-mortar bookstore with a lot of extras. When you think of Amazon Books and you include Amazon Prime, it takes the best of both

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worlds and combines them together. Amazon Books has a select number of products generally in the most popular categories and allows you to shop as you would in a regular bookstore or with your app. You can use your app to pay, or you can pay in a normal fashion. If you’re a Prime customer, you receive all the price and extra benefits of Prime while you’re in the store. Much like the Apple Store, Amazon Books stores are extremely modern from the lighting to the setup itself. While I only had an opportunity to go into two Amazon Books, the experience is fun and quick with fast and friendly service.

Whole Foods

Lastly, why would Amazon buy Whole Foods? For starters, Amazon has been working on same-day grocery delivery for some time. Delivering fresh groceries is much more challenging because they’re perishable and a lot more susceptible to damage in delivery. Amazon’s acquisition of Whole Foods, in my opinion, is about a logistics and supply chain—a bigger network of warehouses to get customers fresh food within four hours.

sexy

MAKING BRASS

SINCE 1986

Retail Loss Prevention

At this point, if you’re asking yourself what this has to do with retail loss prevention, I hope I can tie it together. What Amazon has done, and some retailers have failed to do, is figured out how to create a customer experience that is conducive to the evolution of technology, economic state, and the generational differences. So the next time you think of tackling a loss prevention challenge like shrink, I would recommend taking a step back and taking those three considerations. For example, twenty-five years ago, if you had a problem in the store, your first inclination may be to lock it up or staff the store. What if you found ways to sell the product quicker, faster and better while increasing inventory visibility by utilizing RFID to pinpoint the problem? Another example could be working with real estate to determine risk. In the past, you would look at crime and other statistics. Today, you can use your advanced marketing model, customer shopping behaviors, and your dot-com data on orders. What about identifying a dishonest customer today? You could reverse your good marketing models to see the bad customers. Lastly, with EAS in the past, you would look at an AM or RF solution. Today, you can use an RFID solution to protect your product while enhancing your inventory to help fulfill online orders. My point here is not that Amazon is a danger but rather a company that should help raise the bar for all of us. Use all your data and resources. Always think of the customer experience first. Remember that more than 90 percent of people still shop in a store. Make their experience great, so it stays that way. Always think bigger.

We’re also pretty good at building custom KeyControl® programs that reduce overall operating costs.

LEARN MORE AT

www.instakey.com/retail

LP MAGAZINE | JULY–AUGUST 2017

OR CALL US AT 1-800-316-5397

LPM EXCELLENCE The LPM “Magpie” Awards offer a means to celebrate industry accomplishments on an ongoing basis, recognizing the loss prevention professionals, teams, solution providers, law enforcement partners, and others that demonstrate a stellar contribution to the profession. The ability to influence change is a product of drive, creativity, and

LPM “Magpie” Awards: Applauding Excellence

determination, but it also requires a unique ability to create a shared vision that others will understand, respect, support, and pursue. Each of the following recipients reflect that standard of excellence, representing the quality and spirit of leadership that makes a difference in our lives, our people, and our programs. Please join us in celebrating the accomplishments of our latest honorees.

Excellence in Leadership

Excellence in Partnerships

Excellence in Leadership

With almost forty years of experience, Gene Smith, LPC, has been a key leader in the industry as a loss prevention practitioner, an executive search consultant for the LP industry, and much more. In 2007, Smith became a charter member and president of the Loss Prevention Foundation (LPF), the international leader in educating and certifying retail loss prevention and asset protection professionals. “I consider my greatest accomplishment in loss prevention is helping to build LPF in such a manner that it is respected for its quality of content, rigor, and implementation by following high credentialing standards,” said Smith. Through his efforts, Smith has made countless contributions to the careers of retail loss prevention professionals individually and to the LP profession as a whole. In June at the 2017 NRF PROTECT conference, he was inducted into the National Retail Federation’s Loss Prevention Ring of Excellence. “To those looking to further their careers in loss prevention, I would recommend reading as much as you can about LP as well as the retail business, finding a good mentor, becoming a good mentor, and accepting the fact that it is your responsibility to educate and invest in yourself if you want to move forward in your career,” said Smith.

After starting her career with the finance and audit departments at Home Depot, Houston served as the on-site program manager for Home Depot working with Verisk Crime Analytics, where she provided customer service and managed the asset protection information system (APIS) and related datashares for the company. In 2013, Houston joined LPM Media Group, where she manages client relationships involving internal communication, awareness, and training campaigns. “When building business partnerships, I believe it’s most important to find common ground or interests,” said Houston. “It makes it easy to connect with someone when you start with that as a base and can grow the conversation from there.” However, she also believes that partnerships must be built upon a commitment to the relationship. “I’ve always looked for opportunities to network and build relationships with others. I’m a huge believer in the power of networking. Whether it’s taking on extra projects for a department or volunteering for a day on a Habitat for Humanity build, it’s good to get to know people both professionally and informally. Networking isn’t always about what you can get from the network. It’s even more powerful when you can use it to help others.”

Following international travel as an environmental consultant and then a corporate safety manager with Case Corporation, Lajeune was recruited to Sears as corporate safety and hazmat manager in 2003. As her retail career continued to flourish, she was named director of safety for Kmart in 2005, later expanding that role with Sears Holdings as director of corporate safety operations and then senior director of safety, food safety, and hazmat. Lajeune then joined the asset and profit protection team in 2014, has also picked up responsibilities over crisis management, and currently serves as format leader for retail asset and profit protection. With the diversity of her own background illustrating her message, Lajeune feels that leadership requires flexibility, vision, and the ability to bring out the best in the team as key contributors to her success. “We must be able to build on the potential of the team, but we also have to earn their trust,” said Lajeune. “We have to demonstrate both a willingness and ability to learn and grow ourselves while looking to bring it out in others. In order to rally behind your vision, the relationship with the team has to be genuine. Only then will they be willing to do what’s necessary for you, for themselves, and for the entire organization.”

Gene Smith, LPC, President, Loss Prevention Foundation

Katherine “Kat” Houston, LPQ, Director of Client Services, LPM Media Group

Nadine Lajeune, Format Leader, Retail Asset and Profit Protection, Sears Holdings

Nominations Are Encouraged at Excellence@LPportal.com We want this to be your program. Those of you working as LP practitioners witness these exceptional performances on a regular and ongoing basis, and we strongly encourage you to provide us with nominees for each of the award categories. We encourage creative nominations and want the program to cast a positive light on the many tremendous contributions of the loss prevention community. Nominations can be submitted via email to excellence@LPportal.com.

JULY–AUGUST 2017

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INTERVIEW

FROM RETAIL LP TO

SOLUTION PROVIDER TO RESTAURANT BRAND PROTECTION

AN INTERVIEW WITH DAVID JOHNSTON OF DUNKIN’ BRANDS By James Lee, LPC, Executive Editor LP MAGAZINE | JULY–AUGUST 2017

INTERVIEW EDITOR’S NOTE: David Johnston is senior director of loss prevention and corporate security at Dunkin’ Brands. Prior to his current position, he was director of business development with LP Innovations and XBR product manager for Datavantage. Johnston held multiple roles in loss prevention for J. Baker and Jordan Marsh. He also serves as president of the Restaurant Loss Prevention and Security Association. EDITOR: Let’s start at the beginning. When did you get started in loss prevention?

JOHNSTON: I started thirty years ago as a store detective and then an internal investigator for the Jordan Marsh Company in downtown Boston. I was attending college in Boston for criminal justice, so a position like this was an opportunity to gain experience while still in school. From there, I took the position of regional loss prevention manager for J. Baker, Inc., a diversified retailer of shoes, big and tall men’s clothing, and uniforms. It was during my role at J. Baker, that my career path changed. In 1998, Steven May, the SVP of loss prevention at the time, presented a plan to the CEO and board of J. Baker to flip the LP department into a profit center. This resulted in the creation of a new company, LP Innovations, under Steven May, who is still the current CEO of the company and a longtime friend and mentor of mine. With the forming of LP Innovations, we hit the ground running, supporting retailers who didn’t have a loss prevention department and those who needed supplemental resources. The challenge was that we, all LP professionals, needed to develop the business. We needed to learn to sell, market, and grow LP Innovations to retailers of all sizes, segments, and structure. That is where I began to learn about business, from selling the value of loss prevention to executives to developing programs for a variety of retailers. EDITOR: When did you move to Datavantage?

JOHNSTON: During my time with J. Baker, I became one of the first power users of the XBR exception-based reporting

(EBR) tool in our industry. I also developed LP Innovations’ EBR analysis group, becoming experts in the XBR tool for many of our customers. In 2002, I left LPI to become the XBR product manager, working with another mentor, Raoul Ricard, the creator of the XBR system. I was the XBR product

JULY–AUGUST 2017

manager for four years. During that time, I had the opportunity to expand my business knowledge, understand product development, and most importantly learn how to work with cross-functional teams to support our customers utilizing the technology. It was a great experience to learn how technology is developed,

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INTERVIEW

Dunkin’ Brands is the worldwide franchisor of two of the world’s most-recognized and beloved brands—Dunkin’ Donuts, which started in 1950 in Quincy, Massachusetts, and Baskin Robbins, which started in 1945 in Glendale, California. What I like best about our brands is that although they began on opposite coasts, everyone is passionate about our brands and they evoke powerful memories.

from customer need to development and through the entire implementation process. The role also provided me the opportunity to travel internationally and work with loss prevention departments in different countries. EDITOR: What happened next?

JOHNSTON: In 2006, I returned to LP Innovations. Throughout my career, I have always focused on continuing to develop myself and always seek to maintain positive relationships. I have been fortunate and thankful for those who have helped me to succeed. Paul Jones took a chance on a suburban teen as a store detective and introduced me to loss prevention at Jordan Marsh. Raoul Ricard taught me how to develop great customer relationships and to work with various business units for the greater good of the customer and the business. When Datavantage was purchased by Micros, things changed. In short, I found that I didn’t want to work for such a large company and sought to make a change. The timing was beneficial as Steven was taking LP Innovations private and looking to develop a deeper bench to help develop the business. So he recruited me back to LPI to develop the business development channel, working with sales and marketing and consulting. I have a long history with Steven and am grateful for all that he has done to develop me into a well-rounded business executive and loss prevention professional. Steven has always been a leader who helps you to develop. I recall one time that he made me approach our CFO at J. Baker to ask for budget and approval for an idea that I had presented. His approach was if you have an idea, you own the idea; you’re responsible for seeing it through. His approach allowed me to learn, develop new initiatives, fail on occasion, but learn from my mistakes. My experience at LPI was invaluable to my future career plans. EDITOR: So now, after sixteen years on the vendor side, you’ve returned to LP. When and why did you make that decision?

JOHNSTON: As a solution provider, it was important for me to stay engaged LP MAGAZINE | JULY–AUGUST 2017

INTERVIEW

Speaking with David Johnston is Amanda Marschilok, LP analytics manager (left), and Patrick Finnegan, senior manager of corporate LP (right).

Our core initiatives are focused on educating the independent franchise business owners on the importance of incorporating the concepts of loss prevention into their businesses. We educate them on understanding how losses affect sales, unit economics, and overall profitability. We show them systems, reports, and metrics that we think can help them better understand their businesses, and they then are positioned to take their own actions to reduce loss. with the practitioners and the practice of loss prevention. Although I was helping many companies through LPI, I missed developing my own team and program. When the position became available at Dunkin’ Brands, several practitioner friends of mine convinced me to apply, many saying that my approach and experience would be ideal for the position. Interestingly, after I applied, the director of recruiting called me and wasn’t sure if I was qualified for the position. She didn’t see any retailer or

restaurant company as my last three employers and didn’t know if I had the qualifications. When I described LPI and my experience, she asked me to come in for an interview. I am glad she called rather than cast my resume aside. Otherwise, we may not be speaking today. The final decision was difficult in saying goodbye once again to Steven and LPI, but as a good mentor and leader, Steven knew Dunkin’ Brands was a great fit for me. I was born and raised here in Massachusetts, so Dunkin’ is in my JULY–AUGUST 2017

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blood. During the interview process I learned quickly how engaged everyone is here at Dunkin’ Brands, the history of the brands, an energizing environment, and the opportunity to develop a new approach to loss prevention in the company. EDITOR: Before we get into the LP side of Dunkin’ Brands, give us a little background on the company itself. continued on page 30

INTERVIEW

Restaurant Loss Prevention and Security Association Conference Scheduled for July 30–August 2 in Las Vegas EDITOR: In addition to your professional responsibilities, you are also the current president of the Restaurant Loss Prevention and Security Association (RLPSA). Tell us about that organization.

JOHNSTON: The RLPSA is an association specific to loss prevention, safety, and security professionals in the restaurant and food-service industry segment. This year is its thirty-eighth year, and although our segment has evolved, the RLPSA goal is to stay focused on member engagement, solution provider partnership, and solving restaurant and food-service issues. EDITOR: What is your role there as president?

JOHNSTON: The president leads the board of directors and supports the associations’ long-term strategic plan. Unlike some other associations, a board member serves for three years, and the president serves a one-year term. As president, the focus is to continue the progress made the previous year, bring forth new initiatives, and prepare the board members for the following year and eventual next president. The RLPSA has an executive director, who serves as the primary director of the association. We are fortunate to have Amber Bradley serving as our executive director for the past couple of years. EDITOR: Who are some of the other companies that are represented on the board?

JOHNSTON: We have some great leaders and very passionate people on our board. This year’s board includes Rocco Prate from Wendy’s who serves as vice president of the board, Michael Loox from BLD Brands, Van Carney from Dominos Pizza, Ken Gladney from Taco Bueno, Linda Zaziski from Little Caesars, along with Scott Elkins from UAS and Stephen Longo from CAP Index. We have great representation of different company structures, safety and LP expertise, and industry diversity on this year’s board. You may have also noticed that two of the board members are solution providers. The RLPSA, from its very beginning, has valued the relationship between practitioner and solution provider. The RLPSA has two positions on the board that are held and voted on by solution providers. The engagement of our solution providers within the RLPSA helps us as practitioners, and the involvement of business leaders on the board make us better. EDITOR: Other than the annual conference, what are other initiatives you are engaged with?

JOHNSTON: Last year we unveiled our long-term strategic plan, which included several initiatives to help us grow and evolve with our membership and our challenges. This plan includes enhancing current programs like our RLPSA Connect, a one-day regional workshop held twice a year to connect law

enforcement, members companies, and franchisees to discuss timely and regionally specific LP, safety, and security issues facing the restaurant industry. With our solution provider membership, we have continued to expand our webinar’s throughout the year, helping our membership learn of new offerings and technologies available to make us better. Some new initiatives this year include our improved website that now provides more resources and tools to assist our members. Developed by our members, these resources can assist in developing programs and procedures in various restaurant settings. We have also conducted several membership discussions, giving our membership the opportunity to share, discuss, and network with each other on several timely topics. Some of the topics this year have included mobile and digital fraud, smart safes, and protecting our locations against robberies. All of our initiatives are true to the RLPSA tagline—“Smarter. Together.” EDITOR: Your next annual conference takes place in July. Where is it and what does the agenda look like?

JOHNSTON: Our thirty-eighth annual conference will be in Las Vegas from July 30th through August 2nd. We’ve got a fantastic agenda planned. Amber, Rocco, and our planning committee have done a great job lining up fantastic speakers and timely topics. Our opening keynote speaker is Eric O’Neil, former FBI counterintelligence operative. The movie Breach was based on his work in taking down one of the most infamous US spies, an FBI agent providing intelligence to the Russians for more than twenty years. He will be discussing several topics including protecting your company against insider threats. We also have Shawn VanSlyke, former FBI behavioral analysis unit chief, who will be speaking on today’s changing violence landscape with homegrown violent extremists and understanding potential radicalization in the workplace. Another exciting speaker will be William Espy, brand visionary from Chipotle. He will be discussing the issues Chipotle has faced over the past year and how to handle brand and business in the event of a crisis. EDITOR: That’s power packed right there with those speakers.

JOHNSTON: Absolutely, but just as exciting as our great line-up of keynote speakers, the presentations we have from our membership looks to be even more engaging and educational. Our members continue to support the RLPSA through their willingness to share information and present their programs and initiatives to those attending the conference. We also have a great solution provider expo, with several new solution providers coming for the first time this year, and veteran solution providers who continue to support the RLPSA and our membership. [Learn more about the RLPSA conference on page 58.]

LP MAGAZINE | JULY-AUGUST 2017

INTERVIEW continued from page 28

JOHNSTON: Dunkin’ Brands is the worldwide franchisor of two of the world’s most-recognized and beloved brands—Dunkin’ Donuts, which started in 1950 in Quincy, Massachusetts, and Baskin Robbins, which started in 1945 in Glendale, California. What I like best about our brands is that although they began on opposite coasts, everyone is passionate about our brands and they evoke powerful memories. Everyone has a story about the first time they enjoyed Dunkin’ donuts or Baskin Robbins ice cream. It makes working for our brands fun. Today there are more than 20,000 Dunkin’ Donuts and Baskin Robbins locations across more than sixty countries. We’re 100 percent franchised in the United States; we have no company-owned locations. We are also unlike many other franchised companies in that we don’t own our supply chain. EDITOR: Do you make recommendations on how franchisees might go about putting together an LP program?

JOHNSTON: As a franchisor, we do not direct, develop specific programs, or require certain measures of our franchisees. We recommend practices and common elements of an LP program, but specifically developing a program is up to each independent franchisee. That doesn’t mean the LP team doesn’t engage with our franchisees, because we certainly do. We just engage more from a consultative and business approach. Our core initiatives are focused on educating the independent franchise business owners on the importance of incorporating the concepts of loss prevention into their businesses. We educate them on understanding how losses affect sales, unit economics, and overall profitability. We show them systems, reports, and metrics that we think can help them better understand their businesses, and they then are positioned to take their own actions to reduce loss.

On the corporate security side, our biggest responsibility is Dunkin’ Brands’ roughly 1,100 employees, especially the safety and security of all employees while traveling to any of our locations across sixty-plus countries around the globe. Whether it is a member of leadership traveling to an area or an international business manager in-country, our employees are our brand, and we want to keep them safe. JULY–AUGUST 2017

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INTERVIEW EDITOR: What responsibilities does your team have in loss prevention and security on the corporate side?

JOHNSTON: Our team is fully engaged in various aspects of our business, which is a testament to the people on the team and our ability to build relationships with other departments. The LP team focuses their time on our franchisee initiatives, understanding that the more profitable our franchisees are, the better it is for us as the franchisor. We also are responsible for investigating certain violations of our franchise agreements, including intentional underreporting of sales. We look for loss prevention managers who are business savvy, can understand financial documents, and can lead a sophisticated investigation. The team also has a role in investigating potential fraud regarding our e-commerce. On the corporate security side, our biggest responsibility is Dunkin’ Brands’ roughly 1,100 employees, especially the

safety and security of all employees while traveling to any of our locations across sixty-plus countries around the globe. Whether it is a member of leadership traveling to an area or an international business manager in-country, our employees are our brand, and we want to keep them safe. EDITOR: Do you use any support services to help with travel safety?

JOHNSTON: We are a small department here corporately, so we do utilize third-party services to support travel safety, in-country security, and medical support. The world is changing from a safety and security perspective. Locations like airports and markets and countries that were once considered safe are now primary targets for attacks. With such a large global footprint, employees can be anywhere across the world, visiting restaurants, new countries or cities for development, or coffee fields located in the mountains of third-world countries. Our travel-safety program

includes educating our employees on key principles to help them remain safe, providing information and alerts quickly to those traveling, and having services at the ready should we need to assist our travelers or those living abroad. It is a team effort with the traveler, our partners, and our corporate team focused on safety. We also participate in several government-sponsored information networks. Before coming to Dunkin’ Brands, I was aware of these networks but as a solution provider never engaged as a member. We are a member of the FBI’s Domestic Security Alliance Council (DSAC). We are also a member of the Overseas Security Advisory Council (OSAC) with the Department of State. These memberships, along with others, are very important when you need to protect US brands and employees across the world. I highly recommend US brands engage with these public-private networks. In today’s environment of terror, cyber, and violence, this

Let our patented Sherpa™ Tag guide your Yeti sales to PEAK PROFITS!

For More Information: (800) 466-4502 www.isscorpus.com LP MAGAZINE | JULY–AUGUST 2017

INTERVIEW

Our success has been the transition of the entire team into business professionals first, focusing on the concepts of loss prevention. I have a great team, people much smarter than I am, and everyone focused on how we can continue to make our franchisees more profitable—their success is our success. partnership has proven to be very beneficial to our efforts. EDITOR: What position do you report to at Dunkin’ Brands?

JOHNSTON: I report to the chief legal and human resource officer of our brand. I have a very supportive leader and executive team. They understand the value our team brings to both the brand and our franchise community. Without that, we would not be as successful as we have been in our efforts. EDITOR: How does the company measure your performance or effectiveness?

JOHNSTON: We measure our performance based on the metrics of the business. We don’t have employee theft, shoplifting, or shrink percentage to measure our value. Our team measures performance primarily based on our impact to comparable sales, weekly sales increase, and other metrics focused on restaurant and franchise network performance. To help educate leadership on the team’s value, we implemented a Quarterly Department Review or QDR, which is a business recap distributed to each brand’s leadership team and my supervisor, showing the team’s activities

and accomplishments. The value of this QDR is that it is presented using the company’s business metrics and calculating our financial impact to both the franchisees and the brand. Sharing these results has made us better business partners, increased our engagement with franchisees, and continue to show the value of our team. EDITOR: What types of things have you instituted when it comes to data technologies and analytics?

JOHNSTON: Over the past three years, our focus has been on increasing our analysis capabilities and presenting those opportunities to our franchisees. Our team’s success depends on our ability to educate franchisees on the importance of loss prevention. We need to market our initiatives to the independent franchise business owners. This is where my experience as a solution provider has been invaluable to my position here at Dunkin’ Brands. We are selling loss prevention every day. We are showing how business owners can be more profitable integrating loss prevention into their business cultures. From a technology standpoint, we have begun to utilize the tools being used by our business analytics team to help us improve how we test, analyze, JULY–AUGUST 2017

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and present results. Using the same tools allow our results to have the same validity with leadership, with everyone speaking the same language and trusting the results. Our success has been the transition of the entire team into business professionals first, focusing on the concepts of loss prevention. I have a great team, people much smarter than I am, and everyone is focused on how we can continue to make our franchisees more profitable—their success is our success. EDITOR: You obviously have a great deal on your plate at work. How do you spend the time you manage to have away from your professional life?

JOHNSTON: My wife of twenty-five years and I enjoy spending time with our two teenage children. We do as much as we can as we know they grow quickly and will eventually be off leaving the house in a few short years. If I am not traveling, I can be found playing ice hockey two to three times a week and for the last sixteen months studying Krav Maga, which is the Israeli military self-defense fighting system. I am also an avid reader, always having a book or two nearby to read throughout the week.

As a member of The Loss Prevention Foundation, you join an association founded by and for loss prevention professionals. With access to an elite network of fellow industry professionals, development tools tailored specifically to our industry to help you advance your career and other great member benefits such as exclusive access to elite savings and discounts on thousands of products and services nationwide. Your membership is not only a demonstration of industry leadership; it’s a commitment to the profession and to your own professional development. Elevating the Industry, One Leader at a Time. For more information, visit losspreventionfoundation.org or call (866)433-5545

BENCHMARKING by Adrian Beck, Walter Palmer, and Colin Peacock

Adopting an Intervention Assessment Framework in LP

he recent benchmark report, Emerging Technology in Loss Prevention Retailing, reviewed the current use of nine technologies and the primary problems they are being used to address. While offering some useful insights on how the US loss prevention industry currently views these technologies, the development of the benchmark questions also raised issues about how different types of technologies and other interventions are selected for trial and use, the criteria chosen to measure their impact, and ultimately, how they are evaluated to understand their impact and return on investment. A visit to any of the annual loss prevention conferences will reveal an exhibition hall packed with vendors and technology suppliers offering a plethora of interventions designed to provide solutions to the myriad of retail loss problems faced by those attending the event. Most exhibitors naturally claim their interventions work and will prove to be excellent investments, with a number providing some form of evidence that it has already been proven successful. For the loss prevention executive, the challenge can be daunting, not least in terms of finding verifiable independent information on whether the claims being made stand up to any form of scrutiny and that the interventions will be applicable to their particular environments.

Developing a Clear Sense of Purpose

Risk Amplification: Making Offenders Think Twice, a recent study by Adrian Beck undertaken for the ECR Community Shrinkage and On-shelf Availability Group in Europe, reviewed the available published literature from the past forty years on a wide range of interventions intended to control theft in retail stores (for example, EAS, CCTV, signage and stickers, store design and layout, shelf-edge technologies, and the role of store and security staff). It found there were very few reliable studies in the public domain to help loss prevention practitioners draw clear conclusions about what interventions worked and under what circumstances. Most studies were either very dated and/or used methodologies that seriously undermined the efficacy of the findings being presented. The study did recognize, however, that it was only based on what was publicly available, primarily published in academic journals and books, and that numerous

JULY–AUGUST 2017

Beck is a professor in the criminality department of the University of Leicester in the UK where he is primarily focused on research on retail crime and shrinkage issues. He can be reached at bna@le.ac.uk. Palmer is CEO/president of PCG Solutions, a loss prevention consulting, training, and education firm. He can be reached at wpalmer@pcgsolutions.com. Peacock is a visiting fellow at the University of Leicester and strategic coordinator for both the ECR Europe Shrinkage and On-shelf Availability Group and the Retail Industry Leaders Association Asset Protection Leaders Council in the US. He can be reached at colinpeacock@hotmail.co.uk. All are frequent contributors to both LP Magazine US and European editions.

unpublished company-specific cases may well exist that contradict the conclusions drawn in the report. The findings of the study do raise key questions about how loss prevention executives should go about selecting new interventions to be introduced into their businesses—what methodology should be adopted to ensure they are actually addressing the needs of the business and that performance measures have been clearly articulated. This may seem obvious, but when it comes to significant investments such as CCTV, is it always clearly articulated exactly what it is supposed to achieve,

how it will deliver its intended purpose, and how its impact will be measured? Too often the language can be very loose and vague—“CCTV is being introduced to reduce crime and make staff feel safer.” What sorts of crime will it reduce and how will it do this—will the cameras leap from the ceiling and apprehend shoplifters? How will it make staff feel safer—will the display monitors intervene when a shopper becomes violent? How will its impact be measured—a reduction in crime? Measured how—through changes in rates of shrinkage or numbers of shoplifters reported to the police? Vague plans and unclear key performance indicators (KPIs) can seriously undermine not only confidence in the technology itself but also the judgement and integrity of those making the case for investment. Developing a clear sense of the purpose of the intervention, the necessary context within which it will operate, the way in which it will work (its mechanisms), and the measurable outcomes that will flow from its use are key questions to consider before deciding on any potential investment. This is particularly the case when it comes to emerging and future technologies where the developers may be both new to the world of loss prevention and still formulating the potential impact their interventions may deliver. For example, there is much current discussion and hype around developments such as drones, robotics, and feature-recognition technologies, and how they may be used within the realm of loss prevention. While a philosophy of “let’s see what happens when we use it” can be appealing in some circumstances, the challenging questions of what they will actually do and how they will make a measurable

difference remain key to securing their future use or not in the retail space.

Intervention Assessment Framework (IAF)

When considering a given intervention, it is important to consider the following four factors: 1. Purpose. What is the overall goal of the intervention? What is it supposed to do for the business? 2. Context. What needs to be in place in order for the intervention to deliver its impact mechanisms? 3. Impact Mechanisms. In what ways will the intervention actually work in order to meet its stated purpose? 4. Intervention Outcomes. How will the impact of the intervention be realized? It is perhaps worthwhile considering an example of how this would work for one of the interventions identified by the benchmark research on emerging technologies—smart shelves. In the example on page 36, the purpose of the intervention is to provide greater awareness of when products are removed from a shelf or display. Typically, this type of intervention is used for high-value items or those considered to be at risk of sweep thefts (high-volume stealing). The specific context of the operation of the intervention is potentially threefold. First, sales staff and/or security staff are alerted (via some form of communication device such as a smartphone or pager) when a product is removed or an unusual quantity of products are removed from a shelf or display (indicating a potential sweep theft), offering them the opportunity to approach the customer to offer help with their product selection

LP MAGAZINE | JULY–AUGUST 2017

Sample Intervention Assessment Framework Intervention

Smart Shelves

Purpose

The ability to detect the removal of product from specific shelves or displays based on defined criteria.

Context

Impact Mechanisms

Members of sales staff or security guards alerted in real time when items are removed from shelf/display.

Staff able to approach potential thieves and increase perceived sense of risk of apprehension.

Losses reduced because offenders less likely to steal protected items due to presence of staff member.

Video recording triggered of the person removing items from a shelf/display.

Help to provide evidentiary data on identification of shop thieves.

Losses reduced because more offenders are prosecuted and banned from entering stores and so deterred.

Members of sales staff or security guards alerted in real time when an unusual number of items are removed from shelf/display.

Staff are made aware of when the shelf/display is empty to better avoid out of stocks.

Losses from other unprotected products increase as offending is displaced by the intervention.

Video recording triggered of the person removing an unusual number of items from a shelf/display.

Lost profits from out of stocks reduced as fewer items are leaving the store without being recorded, improving stock file accuracy.

Alert triggered when there are no items remaining on the shelf/display.

Lost profits from out of stocks reduced as staff are made aware more quickly of empty shelves/displays.

and payment. For the genuine customer, this can be perceived as attentive service, while for the prospective thief, this level of attention would normally lead to them being deterred from carrying out their intended criminality. Secondly, the smart shelf could trigger video recording of the person(s) removing the items. Thirdly, the smart-shelf activation could send an alert when the last product has been removed from the shelf or display, highlighting an out-of-stock situation. In terms of the impact mechanisms these contexts trigger, staff responding to the alerts and making themselves present and visible will increase the probability that would-be thieves are more likely to be deterred. (Research has shown that thieves themselves regard attentive staff to be highly effective.) By recording the instance when the products are removed from the shelf, the retailer is increasing the chances of identifying persistent or known thieves and increasing the likelihood of having more evidence to prosecute them in the future. Finally, by alerting staff when the shelf or display is empty, the intervention is increasing the likelihood that out-of-stock situations and the subsequent loss of sales is minimized. The final component of the framework requires that the intervention outcomes are identified. In this example, five have been suggested—four positive and one negative. In terms of positive measures, retail losses (probably measured through SKU-specific shrinkage numbers) should be reduced as more would-be thieves are deterred. They should also be reduced because more thieves are prosecuted and banned from entering the store through the greater availability of CCTV evidence. Lost profits from out of stocks should also be reduced by having greater inventory accuracy because fewer items are leaving the store without being recorded and by ensuring fewer out-of-stock events go unnoticed by store staff. However, there could also be a negative impact of

Intervention Outcomes

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the intervention—would-be thieves could be displaced to other products in the store that are not protected by the intervention.

Generating Greater Rigor in the Use of Interventions

Taken together, the intervention assessment framework can be used to create a more systematic and considered approach to the selection, review, and use of new interventions aimed at helping to manage retail losses. It offers a way to inject greater rigor into the approach, to enable practitioners to think through the specific context within which an intervention will operate and whether its application is suitable for a given environment. For instance, in the example above, if staffing levels preclude employees from responding in a timely fashion to alerts, then the associated mechanisms and outcomes will not be achievable. Equally, if the current CCTV system cannot be used to generate evidentiary quality output, this will also undermine the capability of the intervention to deliver the desired outcomes. Finally, the framework offers a way to provide clearer synergy between the intended outcomes (in the case of many loss prevention interventions, lower levels of losses) and the way in which they will be achieved. Too often in the past, technological interventions in particular have been introduced without any clear sense of how they are actually supposed to work in a given retail context. And with the advent of yet more emerging and future technologies, it is now even more important to think through not only what they are intended to achieve but also how they will go about doing it.

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CERTIFICATION By Christina Kendall

Professional Membership: What’s in It for You?

Kendall is the marketing and operations coordinator for the Loss Prevention Foundation where she is responsible for overseeing the marketing initiatives as well as delivering operational support in all foundation areas. She is a graduate of the University of North Carolina at Charlotte where she earned a bachelor's in mass media communications. Kendall can be reached at 704-405-4404 or via email at christina. kendall@losspreventionfoundation.org.

ore than a decade ago, the Loss Prevention Foundation (LPF) set out on a mission to educate and bring awareness to the important and fast-growing field of retail loss prevention and asset protection. Now, with two professional certification courses designed for both the seasoned LP veteran and the entry-level professional, the industry is becoming more accomplished than ever before. As a professional organization, the LPF had a vision to further the LP profession through not only certification, but also a membership program. An LPF membership is aimed at keeping you informed, educated, and connected to the world of retail loss prevention and asset protection. Our membership program is designed for any professional interested in accessing an elite network within the LP/AP industry—law enforcement, retail, security, students, recent graduates, and military veterans just to name a few. You may be asking yourself, “Why should I join the LPF, let alone any professional organization?” One of the most important reasons to join is networking.

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Exclusive Discounts

Another major perk of most professional affiliations are discounts on select items. An LPF membership offers a significant value on services meant to enhance your career and reinforce your knowledge of the LP/AP industry. As an elite member, you will save: ■$ 125 on your LPC recertification fee, which is free with three years of consecutive membership. ■$ 75.50 (10 percent) on full-course payment for LPC. ■ $49.40 (10 percent) on full-course payment for LPQ. ■$ 100s every year with an exclusive opportunity to opt into the Member Rewards program at $19.95 per year. ■3 3 percent on LPF educational events.

Resume Enhancement

Networking

Membership in a professional organization can provide you with a way to contact and keep in touch with other industry professionals, which can often lead to valuable business relationships and new career opportunities. An LPF membership gives you the opportunity to join a variety of groups and connect with others to be a part of an exclusive association within your chosen career path. Membership provides contacts at the local, state, national, and even international level. Such contacts can be invaluable when searching for a new position or to expand an existing practice. ■M ember Map—See and connect with LPF members near and far. ■C hat and Connect—Network online with other loss prevention and asset protection professionals. ■S ocial Identity—Securely create your own secure industry social identity by building and sharing your wall, blog, photos, and files with other like-minded professionals.

Learning Resources

Members have access to professional development resources to enhance skills and stay in the loop when it comes to industry changes, events, and information. The LPF offers the following areas of our member site: ■C areer Center—Take time to consider, plan, and actively grow your career with our tips and content. ■E ducation Center—Dig deep into loss prevention professional topics. ■K nowledge Center—Display your expertise while mentoring others through wiki-style knowledge-base contributions.

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S tudent Center—Discover and create your LP/AP future. P rofessional Center—Find and connect with industry professionals and academic institutions around the world.

Whether you’re transitioning into the industry or searching for a new position, the key to getting noticed by hiring managers is a well-rounded resume, which means having industry-specific knowledge and proof that you are a serious professional in your chosen field. Being a member of a professional organization can provide you with evidence that you are truly invested in your career.

Contributing to the Industry

Being able to contribute to the development of standards and best practices is a vital part of the relationship between members and their association. The LPF is committed to giving its members the chance to help influence the growth and vision of the foundation by offering opportunities to join several different committees or volunteer for various foundation activities that allow your voice to be heard in improving our standards and processes. By joining the LPF you are supporting our mission and efforts to elevate the loss prevention industry to a respected profession across all retail and business environments. Becoming a supporting member of the LPF connects you with industry leaders and those that share your desire to elevate the professional status of loss prevention practitioners. Your commitment will also serve as a tangible reminder to prospective employers that you have a strategic, long-term vision of the loss prevention profession. To learn more about LPF membership and its benefits, select the Membership tab at losspreventionfoundation.org or contact us at 866-433-5545.

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Newly Certified

Following are individuals who recently earned their certifications.

Recent LPC Recipients Meta Bickford, LPC, Belk Department Stores William Brown, LPC, HEB Matthew Brown, LPC, Sears Holdings George Clapper, LPC, Home Depot Sarah Couture, LPC, Walmart Justin Demes, LPC, 7-Eleven Kevin Dodson, LPC, DICK’S Sporting Goods Jason Friedman, LPC, Lowe’s Ryan Funkhouser, LPC, Lowe’s Kimberley Gilchrist, LPC, Indigo Books and Music Dennis Hunter, Jr., LPC, Sears Holdings Kyle Jones, LPC, Walmart Jaclyn Kachur, LPC, Indigo Books and Music Kevin Kurtz, LPC, TJX Anthony Lopez, LPC, Belk Department Stores Stacie Lundberg, LPC, Walmart Amanda Mague, LPC, DICK'S Sporting Goods Timothy Marshall, LPC, Walmart Rebecca McCaffrey, LPC, Walmart Ryan McCarthy, LPC, Lowe’s Andrew McGill, LPC, Sears Holdings Tricia Miller, LPC, Walmart Debra Pullins, LPC, Office Depot Thomas Ryan, LPC, Walmart

Christopher Sacramone, LPC, Walmart Fidelio Salinas, LPC, DSW Alan Shann, LPC, Walmart Eric Surprenant, LPC, CFI, Sobeys Cory Taylor, LPC, Walmart William Thielen, LPC, Goodwill Industries of Manasota Allan Watters, LPC, Stage Stores Christopher White, Sr., LPC, Walmart Rachel Wile, LPC, Sears Holding

Recent LPQ Recipients Stephen Boyd, LPQ, Mississippi College Andrew Brown, LPQ, Goodwill Industries of Southern Nevada Marc Cayer, LPQ, South Country Co-op James Chamberlain, LPQ, Weis Markets Anthony Edwards, LPQ, Inner Parish Security Corporation Byron Gough, LPQ, University of Indianapolis Rodney Jackson, LPQ, Walmart David Jones, LPQ, Home Depot Ashley Lacaillade, LPQ, AEO Paul LaCount, LPQ, Festival Foods Patricia Lundquist, LPQ, Regis Corporation Nigel Matthews, LPQ Michael Mulhern, LPQ, Next Group Adrian Peterson, LPQ, Regis Corporation Michael Simmons, LPQ, Inner Parish Security Corporation Jonathan Tejada, LPQ, Goodwill Industries–Suncoast Brittany Yakimec, LPQ, Cornerstone Co-operative

The Future is NOW in Supply Chain Security

ANNUAL CONFERENCE SEPT 12–13, 2017 Curtis Culwell Conference Center Dallas, Texas

LPM Subscribers get 20% off! Register at ISCPO.org and use Promo code LPM20 Once again we’re bringing together loss prevention, security, and protection professionals working in the global supply chain for two days of education, networking, and collaboration.

• Hear speakers from both private sector and public law enforcement who will tackle issues currently affecting the global supply chain • Network with industry peers, thought leaders • Discover best-in-breed vendors, innovative products, and services • Learn how to formalize LP strategies, implement cost-saving security programs, drive change and get C-level buy-in. Global threats, cyber security, and omnichannel distribution are disrupting and transforming our industry. Attend the only LP conference that advocates security and risk management across the whole supply chain. Get the knowledge and tools you need to stay ahead of the curve and prevent loss.

LP MAGAZINE | JULY–AUGUST 2017

The ONLY association dedicated to restaurants

Restaurant-specific safety sessions

Restaurant-specific risk sessions

Restaurant-specific loss prevention sessions

The Other Guys

Join the Restaurant Loss Prevention and Security Association (RLPSA) for its 38th Annual Conference specifically devoted to addressing restaurantspecific challenges for loss prevention, risk, and safety professionals. We are the ONLY association dedicated to RESTAURANT Loss Prevention, Safety, and Security professionals. July 30 – August 2, 2017 Las Vegas | M Resort Register today for early bird pricing at www.RLPSAannualconference.com!

SOLUTIONS SHOWCASE CONTROLTEK

A New Approach to LP Systems Deployment

fter thousands of systems installations over the past several years and in the midst of an 1,800-store rollout this year, CONTROLTEK launched a new group christened Professional Services. Behind the unassuming name is a group of industry veterans who came up with a new approach to deploying and servicing EAS and RFID systems. The reason? “We want to make it easier for LP teams to get the technology they need, help them get the ROI they expect, and alleviate the most common pain points in the process,” said David Hardeman, director of client solutions delivery for CONTROLTEK. The new group has rolled out three new services that, according to Hardeman, will make life easier for loss prevention teams David Hardeman who are getting new EAS and RFID systems.

Direct Collaboration with Your IT Department

“Nothing can slow down the deployment of a new loss prevention system like the IT approval processes,” said Tom Meehan, CONTROLTEK’s chief strategy officer and chief information security officer. “Fortunately for our customers, we’ve been through the process many times on both sides of the fence—retail side and the solutions provider side. It was a logical step for us to set up a group that will work with the customer’s

IT department directly, rather than expecting the LP team to act as a go-between.” According to Meehan, IT departments often have lengthy approval processes for new systems, which can include piles of paperwork that needs to be filled out. “Security is their priority, so this is understandable. But this also creates a Tom Meehan burden for the LP department that has to fill out all that paperwork and go through the process while at the same time trying to do their regular work,” said Meehan. “Our Professional Services folks speak the same language as your IT department and can work with them side-by-side to assist in the deployment of your new solution so that you can concentrate on your work and not worry about the technical side of things.”

ROI Analysis and Documentation

To help LP departments win the approval and budget in the boardroom, CONTROLTEK now offers a service that uses industry data to help create a substantiated ROI story. “Through use cases and ROI calculations, we can help your organization understand how the investment will impact the bottom line in expected and often unexpected ways—from lower shrink to better inventory management, merchandise availability, and the

With thousands of successful system installations over the years, CONTROLTEK has established itself as one of the most reliable systems deployment companies in the US, trusted by retail chains large and small. LP MAGAZINE | JULY–AUGUST 2017

SOLUTIONS SHOWCASE CONTROLTEK resulting sales lift and customer retention,” said Steve Sell, CONTROLTEK’s vice president of global sales and marketing. According to Sell, this analysis and documentation will help LP leadership be better prepared when their requests for new systems are challenged. “At the Steve Sell same time, we want to elevate the LP leadership teams in the eyes of the rest of their organizations by showing that loss prevention isn’t just about catching the bad guys; it is there to provide a sales lift, an improved customer experience, and ultimately a positive impact to the bottom line.”

Associate Training

“We know that one of the keys to a successful adoption of a new solution is training,” said Rhett Asher, CONTROLTEK’s director of business development. “This is why our Professional Services group is placing a great deal of emphasis on the training of our customers’ associates.” Rhett Asher According to Asher, CONTROLTEK works directly with loss prevention teams or training departments to develop materials on proper application and removal of tags and use of systems and other solutions being deployed. This includes videos, cheat sheets, webinars, and a team that can answer questions as they come up. “The bottom line is that unless store associates know how to handle the new solution to its full potential, the LP team will

After thousands of systems installations over the past several years and in the midst of an 1,800-store rollout this year, CONTROLTEK launched a new group christened Professional Services. Behind the unassuming name is a group of industry veterans who came up with a new approach to deploying and servicing EAS and RIFD systems. not fully realize the ROI it expects. Our goal is to get store personnel up to speed as quickly as possible.” CONTROLTEK’s new Professional Services group does not aim to revolutionize the LP world. But it has already proven that a new focus is needed when it comes to LP technology, one that places emphasis on saving time and headaches for LP professionals. While the company continues to innovate its product line and offer new solutions every year, the real innovation may prove to be the new processes that make LP professionals’ daily lives easier.

CONTROLTEKS’s First Time Right Program boasts an impressive success rate of 95 percent. A system installation, like this New York location of a major retail chain, counts as First Time Right if four conditions are met: (1) CONTROLTEK technician arrived on time, (2) the equipment was already on site, (3) the work was completed and everything worked as expected, and (4) the customer accepted the install by signing off—all on just one visit.

JULY–AUGUST 2017

LOSSPREVENTIONMEDIA.COM

SOLUTIONS SHOWCASE CAP INDEX

Supermarket Leverages CAP to Justify Security Budget, Show ROI, and Reduce Shrink by 15 to 20 Percent

sing the CAP Index® Custom Crime Risk Modeling solution, a large supermarket chain was able to identify at-risk locations, reallocate and prioritize resources, quantify operating costs, reduce loss, and improve safety perceptions across 2,800 stores nationwide.

The Challenge

With 74,000 employees and 14.5 million customers a week, there’s no one-size-fits-all solution that could provide ample security to all locations and still fit within a fixed budget. The goal was to optimize, prioritize, and justify the company’s security investments—equipment, use of guards, and so forth—to maximize budget and the security of customers and employees.

The Solution: Custom Risk Modeling from CAP Index

Successfully allocating resources starts with knowing which stores are at risk. CAP Index is the industry-leader in forecasting crime risk by location. By combining CAP’s data with the supermarket’s own internal incident data, the company created a truly customized risk model that was specifically tailored to its corporate goals and objectives. This allowed it to accurately rank its locations and identify which were at risk.

Results Highlights

uard & Equipment Cost Savings. Hard data justified G removing guards from low-risk stores. ■ Quantifying Operating Costs. The model established the cost-to-operate in an area to serve as a baseline for identifying locations performing below or above average. ■ Prioritizing Investment and Reducing Loss. Leveraging the insight from the model, a pilot program was instituted that showed by upgrading specific equipment in elevated risk locations, shrink is reduced by 15 to 20 percent. ■ Reduced Crime Incidents. After ranking stores by CAP risk and reallocating security resources accordingly, the company found that instances of crime reduced by 50 to 60 percent. ■ Improved Safety Perception. Reduced crime makes locations nicer for both employees and customers. After implementation, personal safety perceptions have improved by 35 percent. ■ Optimized Employee Training. To get employees to help deter crime instead of simply react to it, the model prioritized a behavioral training program at elevated risk locations.

“By utilizing a leader like CAP Index, we are now using accurate, objective data to take a lot of the guesswork out and really deliver a smarter, safer, and more costeffective security solution that has tangible ROI. I have no doubts this will be an industry standard practice in a few years or even sooner.” - Supermarket LP Executive

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Bottom Line

“By utilizing a leader like CAP Index, we are now using accurate, objective data to take a lot of the guesswork out and really deliver a smarter, safer, and more cost-effective security solution that has tangible ROI. I have no doubts this will be an industry standard practice in a few years or even sooner,” said a loss prevention executive at the supermarket chain. To discuss how CAP Index can help your organization, email askcap@capindex.com, call 800-227-7475, or visit capindex.com.

LP MAGAZINE | JULY–AUGUST 2017

OUTSMART CRIME

SOLUTIONS SHOWCASE DIGILOCK

Reduce Retail Theft with LockUp

electronic manager key, which also offers external power. LockUp was designed specifically for the retail industry, where the shift-based environment and high turnover led to specific management and loss prevention needs. By streamlining electronic management for the retail environment, LockUp offers benefits and savings in reduced initial investment, real estate, and time.

urrently in its twenty-fifth year, the National Retail Security Survey continues to offer not only insightful research into retail crime but also successful countermeasures. Key findings from the most recent survey show that the impact of shrinkage continues to be sizeable, with 48.1 percent of retailers reporting increases in inventory shrink. Just one year ago, employee theft was the fastest-growing crime in America. The Jack L. Hayes International Annual Retail Theft Survey also found that one out of every twenty-seven employees was apprehended for theft in 2016. Now for the second year in a row, shoplifting has surpassed employee theft in inventory shrink, and the average loss per incident has increased. While technology is increasing in use as a deterrent for shoplifting, more advanced technology has not yet caught on. Furthermore, technology and hiring practices for deterrence of dishonest employees has dropped, reflecting the change in shrinkage concerns from employee theft to shoplifting.

Innovative Uses

Proven Methods

With changes in technology and trends shifting so quickly, what proven methods empower retailers to attack shrinkage from both sides of the cash wrap? Digilock’s® patented technology and responsiveness to market demands ensures its out-of-the-box solutions are simple, versatile, and most of all, secure. LockUp® delivers a top-of-the-line employee locker complete with the security of a shared-use keypad lock. The locker is manufactured from heavy-gauge, powder-coated metal to withstand heavy use in the most demanding environments. It is delivered ready-to-use, fully assembled with a pre-programmed electronic keypad lock. Options include a clear polycarbonate door, giving store managers the ability to see the contents inside the employee lockers, contributing to internal theft prevention. The procedure is simple: store employees gain access to their lockers with the entry of a self-selected four-digit code, and management controls and audits the lockers by using an

JULY–AUGUST 2017

Although LockUp was designed with employee storage and internal theft in mind, one retailer saw LockUp as a way to deter the increase in shoplifting incidents in high-risk, high-crime areas by adopting a common practice used in Europe. By placing lockers at major entrances, the stores provide a service to their customers—giving them a secure but temporary space to store backpacks and large bags while shopping. The stores are also able to limit concealed theft by being able to remove backpacks and duffle bags from the sales floor. In fact, within the initial testing phase of one month, merchandise theft via concealed backpacks and duffle bags decreased to almost nothing. In addition to reducing internal shrinkage resulting from employee theft, Lockup has proven to be a viable solution for retailers seeking to reduce incidents of shoplifting within their stores. For retailers, LockUp lockers, backed with the expertise and innovation of Digilock’s simple-to-use and easy-to-manage storage system, strengthen loss prevention strategies while enabling management to take proactive steps to ensure merchandise is not lost or stolen, whether from the back-of-house employee storage or front-of-house shoplifting. Through Digilock’s commitment to innovation, LockUp has proven itself to be a cost-competitive solution for secure personal storage and shrink-reduction. Visit lockup.com for more information.

LOSSPREVENTIONMEDIA.COM

SOLUTIONS SHOWCASE LP INNOVATIONS

Top Five Secrets for Making the Outsourcing Decision

o far 2017 has been a very challenging year for retail companies. The number of retail companies that have filed for bankruptcy, closed locations, or dramatically reduced their budgets are clearly shaping this year to be one of the worst years in retail. The challenge most retailers face is simply a lack of resources available to sustain a proactive LP program. Even maintaining a consistent LP presence in all store locations can be a stretch as most field personnel are used to immediately address cases of theft or other critical areas of concern. If you’re an LP director working for a challenged retailer that is closing stores and comps are flat, you have an obligation to help create the most profit you can. You can’t just sit back and hope it passes. You must become a true partner in profitability, take some leadership, and take some risk. A consideration for retailers is to outsource portions of their loss prevention programs or their entire loss prevention function. While this is certainly a consideration for some retailers, outsourcing is not a one-size-fits-all solution. For example, consider your current shrink. If it’s on par or below the national average, outsourcing may not be for you. However, if your shrink rate is an immediate concern, also consider your size. Outsourcing works best for smaller retailers that are geographically dispersed but have limited internal resources. If you’ve determined that outsourcing is the best option for you, the next challenge is to pick a partner. As with any outsourced vendor, the decision to move forward with such a critical portion of your business should be based not only on what types of services they can provide, but also how they demonstrate an exact understanding of your operations and needs. Here are the top five secrets to consider before making the choice to outsource: 1. Coverage. Does the provider have adequate and reliable resources near all of your store locations? If they only cover a small percentage of your store locations, the expense for them to travel may be just as much as sending your own team. 2. Staffing and Certification. Are all staff, including those in field locations, full-time employees? This ensures the accountability and consistency in delivery of your services. Also, as this vendor will act as a primary or secondary “face” of your department, ensure that all members are properly trained and certified. 3. Culture. Communication with your internal team and a demonstrated understanding of your business drivers are crucial

to your program success. If they do not demonstrate a thorough understanding of any of these areas, the partnership will not be a success. 4. Insurance and License. Does the vendor have all the appropriate insurance coverage, are they properly licensed, and how do they demonstrate it? 5. Measurement. The vendor should be able to quickly and clearly demonstrate other cases of reduced shrink, improvement in earnings, and heightened program awareness at all associate levels. While outsourcing is not the best option for all retailers, for some, it has provided the opportunity to shift the loss prevention program from a reactive to a positive state, leading to heightened associate awareness, reduced shrink, and improved earnings.

Your LP Partner

LP Innovations is the only nationwide, single-source provider of loss prevention solutions for the retail industry with a dedicated full-time field staff. Since its inception in 1998, LP Innovations has provided its rapidly growing customer base with a variety of innovative solutions proven to protect profit and reduce shrink. Its expert team is dedicated to maximizing your profitability through proven shrink reduction programs, uncompromising customer service, and its unique ability to seamlessly integrate into diverse business cultures. LP Innovations’ services include: ■ Compliance and Control Audits ■ Investigative Consulting ■ Exception-Based Reporting and Analysis ■ Training and Awareness Materials ■ Mystery Shopping ■ Loss Prevention Consulting ■ Location Risk Assessments ■ Civil Demand and Recovery From a nationwide field staff of loss prevention auditors and certified investigators to a dedicated staff of exception-based reporting analysts and experienced program directors, LP Innovations provides its customers with best-in-class services, helping to build and maintain stronger and cost-effective loss prevention programs. For more information about our services, visit lpinnovations.com.

LP MAGAZINE | JULY–AUGUST 2017

SOLUTIONS SHOWCASE SOUTHERN IMPERIAL

Open System Design Protects High-Theft Products While Enhancing the Customer Experience

hen combating shrink, it’s important for retailers to pursue common-sense solutions in their stores. Many loss prevention products in the market today are closed systems that keep merchandise under lock and key, which can have as dramatic of an impact on sales as product theft. Also, many loss prevention products are limited in functionality. This issue is where Southern Imperial’s patented SONR System comes into play. The SONR uses an open system design, allowing shoppers to remove and replace the

different sounds to specific product lines to give them an indication of where activity is taking place in the store. For retailers requiring an additional tier of security, the SONR System links into more existing security and communication systems to suit store needs. The SONR Echo Box features different signal output ports to integrate with existing security systems, such as an overhead intercom system or public video monitor (PVM). For example, in addition to the SONR alarm, the Echo Box can also instantly

product without assistance while simultaneously drawing associate attention to activity. Moreover, the SONR is a multitiered security solution that allows retailers to control the level of security for their products.

activate a video monitor showing the effected retail area. These measures work to prevent theft, but also keep all items open and available to potential shoppers.

Multiple Levels of Security

Shoplifters are discouraged from theft as risk increases. The SONR system can add multiple levels of security as the need arises. Its basic level of security starts with the SONR Hook. Merchandise removed from the hook by raising the attached label holder triggers the initial response. Once raised, a warning beep is emitted to alert store personnel that there is activity in the area. For the second tier of security, an Echo Box can be added into the system to mimic all alerts. The Echo Box, which is installed up to fifteen to twenty feet away, will relay all alerts on the floor to a central point for store associates. Unlike other security products, no deactivator is required to reset the alarm. The system Echo Box can be quickly reset as well. The SONR System can be scaled to handle multiple store product lines at a time. The Echo Box features multiple frequencies options that allow store associates to assign

JULY–AUGUST 2017

Keeping Products Visible, Accessible, and Shoppable

Placing merchandise behind lock and key (closed systems) has been shown to decrease sales by as much as 38 percent. SONR Hook provides retailers with a viable solution for displaying valuable items without losing them to shrink. It keeps product visible, accessible, and most importantly, shoppable. To find out more information on Southern Imperial and the SONR Hook, please visit intelligentlossprevention.com or call directly at 1-800-747-4665.

LOSSPREVENTIONMEDIA.COM

LPM DIGITAL

Keeping Safety and Security Top of Mind F

ollowing are a few article summaries that can provide you with a small taste of the original content available to you every day through our daily digital offerings, which are offered free through LossPreventionMedia.com. In addition to our daily newsletter, a comprehensive library of original content is available to our digital subscribers at no cost to you. Visit our website to gain access to all of our content. You can also follow us on Facebook (search LP Voices), Twitter (@LPMag), and LinkedIn.

Active-Shooter Response Has Evolved over Time By Bill Turner, LPC

When it comes to active-shooter response, there is no single tactic that guarantees 100 percent positive results for law enforcement and individuals. Methods are still evolving and being debated. But one trend is common: a more aggressive reaction. One of the most-remembered mass shootings in the second half of the twentieth century was the University of Texas tower shooting on August 1, 1966. On that day, Charles Whitman climbed to the observation deck of the main building, from where he shot and killed fifteen people in an hour and a half. At the time, standard active-shooter response from law enforcement was to have the first officer on scene establish a perimeter to contain the suspect and victim. This approach maximized officer safety and protected the public outside the scene. It also minimized equipment and training costs for law enforcement and allowed time for SWAT to arrive. But these reasonable tactics assumed perpetrators were rational and would negotiate and release hostages. A lot has changed since then. Today, law enforcement often faces suicidal attackers whose desire is to inflict the maximum number of casualties, including themselves in the death toll. Establishing a perimeter and negotiating is no longer effective in all situations. This was made clear in the Columbine, CO, school shooting of 1999. Police established a perimeter and waited a long time to enter the building and attempt to confront the shooters. Because of this delay, many more students were killed.

JULY–AUGUST 2017

By Jacque Brittain, LPC, and Kelsey Seidler Brittain is editorial director, digital, and Seidler is managing editor, digital. The two manage the magazine’s digital channels that includes multiple daily e-newsletters featuring original content and breaking news as well as vibrant social media conversations. Brittain can be reached at JacB@LPportal.com and Seidler at KelseyS@LPportal.com.

After Columbine, law enforcement began to develop more aggressive active-shooter response protocols. First, officers on scene were taught to immediately enter and attempt to engage shooters, using whatever equipment they carried with them. This tactic assumed most attackers were relatively incompetent and could be silenced by a well-trained responder. Attackers have changed. As a result, modern active-shooter response training has changed—again. Nearly all law enforcement officers are now highly trained for these incidents and have active-shooter “kits” in their patrol cars. Today, many officers will immediately enter an area to confront an active shooter. The theory is that, when confronted with law enforcement, shooters will turn their attention to them and away from victims. These tactics have proven reasonably successful, although the emergence of highly motivated terrorists, whose weapons go way beyond guns, has necessitated continual evolvement of active-shooter response tactics. Although not universal, some recent guidelines include: ■A ssess the situation and report immediately. ■M ove the public away from the danger zone, if possible. ■T ake cover from gunfire but not cover from view (concealment). ■A djust response based on the situation—await heavily armed forces, negotiate, or immediately confront perpetrators. “OK,” you say, “that is the active-shooter response plan for law enforcement, but what about me?” For individuals, guidelines for active shooter response remain fairly constant: ■G ET OUT—evacuate immediately moving away from gunfire. ■H IDE OUT—if you can’t evacuate, take immediate cover, hopefully in a locked room. In addition, barricade the door, if possible. ■T AKE OUT—attack the shooter (with anything you have) if you have no other choice. Obviously, no one ever wants to be caught in an active-shooter situation. Fortunately, the odds are against it. But understanding active-shooter response tactics and methods, both for law enforcement and individuals, will go a long way to keep you safer, just in case. LOSSPREVENTIONMEDIA.COM

Best-Ever IOBSE Conference Hosted at Walmart Headquarters

Stop Theft by Shoplifting: Two Ways to Influence Potential Offenders

The International Organization of Black Security Executives (IOBSE) held its 2017 annual meeting April 25–27 at Walmart headquarters in Bentonville, AR. “This year’s conference was an amazing event and one of the best ever,” said Don Knox, CPP, CITRMS, director of enterprise security, crisis management, and business Don Knox, CPP, CITRMS continuity for Sears Holdings, and current president of the IOBSE. “We wish to thank Walmart for their extraordinary hospitality in hosting this year’s conference.” The organization’s annual meeting is focused on providing an educational forum for attendees to learn about emerging trends in the security industry as well as offer ample time for networking with peers. Presenters included executives from Gap Inc., Ross Stores, Walmart, Sears, CVS, Tyco, LinkedIn, and The University of Central Florida. Presentation topics included: ■T he new dynamics of threat assessments ■B uilding and leading high-performance teams ■L eading change ■A ctive-shooter response and others

The following describes a cornerstone theory of judgment and decision-making that has tremendously important implications in loss prevention. The elaboration likelihood model (ELM) of persuasion, developed by Petty and Cacioppo, postulates a dual-process manner in which Mike Giblin decision-makers take in and process information. Bottom line for LP: even if offenders honestly aren’t able to report that they consciously noticed a deterrent designed to stop theft by shoplifting, the presence of one still may have affected their behavior and decision-making processes. Likewise, even if a customer says they didn’t notice or weren’t bothered by an LP measure, it still may affect their shopping experience. Observation of behavioral data (watching outcomes) is superior to first-hand accounts (asking opinions) for this and other reasons.

Keith White, LPC, of Gap Inc. (left) and Christina White of Ross Stores talked on the topic of “Building, Developing, and Leading High Performance Corporate Loss Prevention and Security Teams.”

Peripheral Route When presented with stimuli, we do an initial sweep and determine what deserves our attention and cognitive resources. Think of a drive home from work that you’ve done so many times that you take it in autopilot, where you’d be unable to tell me any specifics of what you saw on the way home that day. Another classic example is finding ourselves humming a song and wondering why. We didn’t attend to a song while it played on the radio earlier that day, and if you asked us if we’d heard it that day, we’d say no. That song has been processed through our peripheral route and affected our behavior despite never being centrally or consciously processed. In the case of LP, offenders may not realize that they’ve seen and been deterred by a loss prevention measure, a clean parking lot, the police officer they saw three blocks from arriving at the store, or any other subtle stimulus. They’re not able to identify these stimuli as having had an effect on them because they were processed through a peripheral route.

By Loss Prevention Media Staff

Two discussion panels on security convergence and building your professional brand were also enthusiastically received by attendees. Walmart executives on the security convergence panel included Jerry Geisler, Gary Smith, Tom Arigi, and Ken Sensor. Not shown was Anthony Williams also from Walmart, who moderated the panel. One of the unique aspects of the IOBSE conference is its sponsorship of college students interested in the security industry who attend the conference as guests of the organization. This year, twenty-seven students from universities across the country were among the attendees. The conference concluded with their traditional black-tie dinner where several members were recognized for their contributions to the security industry. For more information about the IOBSE, visit iobse.org. To learn about the origins of the organization, read LPM’s past feature story, “IOBSE: A Message of Workplace Inclusion and Leading with Purpose.”

By Mike Giblin, LPRC

Background Understanding the intricacies of the decision process is paramount if one wishes to alter that process. Otherwise, you’re simply inputting changes into a black box and observing each output with no real understanding of how the strings are being pulled, what mechanism is responsible for any changes seen, and/or how to adjust or replicate the changes. The ELM model is highly regarded as a theory of attitude change and offers valuable insight on how decision-makers take in and process relevant information. It posits two distinct routes to information processing and therefore two routes to influencing decisions.

LP MAGAZINE | JULY–AUGUST 2017

This finding is one of the major reasons that the social science and business fields strongly prefer observing behavior to asking about behavior. Asking misses out on this important category of influencers.

D isseminating the trigger criteria to supervisors and managers. A threat management unit (TMU) will vary in size and complexity depending on the organization, but members might include legal counsel, security, and threat assessment specialists, managers, and a licensed behavioral psychologist. However, even retail organizations that use outside expertise to conduct threat assessments require internal threat assessment knowledge. Having skilled personnel at a facility or store is critical for knowing when risk factors or patterns of behavior suggest that an outside expert—or the threat team at corporate headquarters—needs to be called upon to more closely assess a situation and provide recommendations for violence prevention strategies. Plus, there may not be time. Internal personnel need to be sufficiently skilled and confident enough to take action in an acute situation. Retail safety training is a good place to start. ■

Central Route Central-route processing occurs when a stimulus catches our attention and is determined to be worthy of our cognitive resources. At this point, we’ve noticed the stimulus, and it enters our conscious thoughts. Most anything that you would consider an influencer of decisions has probably entered through the central route. Offenders are aware of messages received via central-route processing. Everything they tell you affected their decision did so through the central route. This process and subject has been well studied in the LP industry as one significant way to stop theft by shoplifting. Implications Peripheral-route-processed stimuli are important drivers of decisions and need to receive further attention in the LP world. They’re often the same deterrents or process changes that we’ve put in place and currently believe to have minimal effect on customers or offenders due to lack of expressed feedback from those groups. Just because a shoplifter reports, and in fact believes, that they didn’t notice or were unaffected by a security measure or incidental environmental factor does not mean it did not affect them. It simply means that it was not processed centrally. Similarly, just because customers don’t notice and report not being put off by LP does not mean that this is truly the case, even if the customer believes it to be. Measuring behavior is the only reliable way to get the full scope of a treatment’s effect. Sales, shrink, behavioral incidence data of retail theft events, dwell-time data, and conversion data are paramount for research in loss prevention. Video analytics to code and understand behavioral outcomes is a growing and exciting data source.

July - August 2017

Articles inside

PARTING WORDS

PEOPLE ON THE MOVE

LPM DIGITAL

SOLUTIONS SHOWCASE

CERTIFICATION

ASK THE EXPERT

LPM EXCELLENCE

BENCHMARKING

INTERVIEWING

FUTURE OF LP

EDITOR’S LETTER